Onafriq and Circle Partner to Transform Cross-Border Payments with Stablecoins

Onafriq and Circle have partnered to revolutionise cross-border payments in Africa using USDC stablecoins. This collaboration aims to reduce high transaction costs, enhance financial inclusion, and improve payment efficiency across 40 African markets. By integrating blockchain technology, the partnership seeks to transform Africa’s financial landscape, offering faster, more affordable, and transparent payment solutions.

Onafriq, Africa's leading payments gateway, and Circle, the market leader in stablecoin technology and issuer of USDC, have announced a strategic partnership that aims to revolutionise cross-border payments and digital financial services across the African continent. This collaboration seeks to leverage blockchain infrastructure and stablecoins to enhance the efficiency of Onafriq's payment network, positioning it as a key player in the future of digital payments.

Over 80 percent of intra-African payments are currently processed through correspondent banks outside the continent, often settled in foreign currencies such as the US dollar or Euro. This inefficient system incurs a staggering US$5 billion in transaction fees annually, hindering economic integration efforts across Africa. The new partnership between Onafriq and Circle is set to address these challenges by introducing USDC-powered settlement solutions into Onafriq’s network.

With a presence in over 40 African markets, Onafriq connects more than 500 million mobile money wallets, 200 million bank accounts, and over 400,000 agents. The network enables domestic and cross-border disbursements, collections, card issuing, agency banking, and treasury services. By integrating USDC into its platform, Onafriq aims to significantly reduce the costs of cross-border transactions and simplify the financial processes for both institutions and individuals.

Vision of financial inclusion and empowerment

Onafriq’s founder and CEO, Dare Okoudjou, highlights the significance of this partnership in removing the complexities from cross-border payments:

“Our partnership with Circle is an important milestone, reinforcing Onafriq’s commitment to harnessing technology to remove complexity from cross-border payments. By integrating USDC, we aim to simplify financial transactions for institutions and individuals, reduce costs, and strengthen trust. This collaboration underscores our vision to democratise access to payments and drive financial inclusion across the globe. We’re not just envisioning the future of payments - we’re actively building it.”

The introduction of USDC in Africa is seen as a potential game-changer in unlocking new opportunities for financial transactions, offering lower fees and faster processing times. The integration of blockchain technology provides the foundation for a more secure, transparent, and efficient financial ecosystem.

Circle’s role in enhancing financial connectivity

Miriam Kiwan, Vice President, Middle East & Africa at Circle, stresses the transformative potential of the partnership in emerging markets, particularly in Africa:

“The emerging markets that Onafriq serves hold tremendous potential for digital asset innovation, particularly in the adoption of stablecoins for cross-border payments. Our partnership with Onafriq aligns perfectly with Circle’s mission to promote financial inclusion and improve efficiency in areas where traditional banking has often been costly and inaccessible. Together, we aim to transform how money moves across borders, offering secure and transparent digital payment rails that enhance economic empowerment and connectivity.”

Circle’s USDC stablecoin is designed to facilitate seamless and secure transactions, ensuring that businesses and individuals can benefit from the advantages of blockchain without the volatility associated with traditional cryptocurrencies. This partnership will enhance the efficiency and accessibility of digital payments, addressing longstanding challenges in the African payments landscape.

A step towards a self-reliant pan-African financial system

This partnership marks a significant milestone in the modernisation of African payment infrastructure. By leveraging stablecoin technology and blockchain, Onafriq and Circle are working together to establish a faster, more efficient, and economically empowering payment system that can be adopted by a wide range of stakeholders, including financial institutions, merchants, and consumers. The collaboration will also contribute to creating a more self-reliant African financial ecosystem, reducing the continent's dependence on external financial systems.

The companies are working in close collaboration with regulators and financial institutions to ensure that the deployment of USDC is fully compliant with local laws and regulations. This careful approach underscores the responsible application of blockchain technology in line with the best practices in financial services.

About Onafriq

Onafriq is an omnichannel payments network with a mission to reduce the complexities of cross-border transactions by offering a unified platform that connects businesses, financial institutions, mobile network operators, and more. The company operates across 40 African markets and has forged partnerships with over 500 million mobile money wallets, 200 million bank accounts, and a vast network of agents across the continent. Onafriq is at the forefront of driving financial inclusion, offering solutions that span mobile payments, agency banking, card issuing, and cross-border disbursements.

About Circle

Circle is a global leader in financial technology, offering businesses and developers the tools to integrate digital currencies and blockchain into their operations. The company issues USDC, a stablecoin that is widely used in digital payments, commerce, and financial applications. Circle’s mission is to enhance the global financial system by providing secure, transparent, and accessible digital assets to promote financial inclusion and empower enterprises worldwide.